Toyota reportedly plans to begin producing a next-generation Lexus electric SUV at its new Shanghai facility in the second half of 2027, marking a significant shift in the automaker’s approach to developing and manufacturing new electric vehicles for the Chinese market.
According to Nikkei, production is expected to begin in autumn 2027 at an initial rate of around 1,000 vehicles per month. Toyota plans to increase annual production to tens of thousands of units from 2028, although a specific target has not been disclosed.
Cautious Initial Production Ramp-Up
An output rate of approximately 1,000 vehicles per month would correspond to around 12,000 units annually during the first year.
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That would represent about 12% of the Shanghai facility’s planned annual capacity of 100,000 vehicles, indicating that Toyota is expected to take a measured approach to the production ramp-up.
The Shanghai facility is being developed specifically for Lexus battery-electric vehicles and is located in Jinshan district in the southwestern part of the city.
Construction began in June 2025, with production planned to start in 2027.
Lexus EV to Use Gigacast Technology
The next-generation Lexus electric SUV is expected to incorporate advanced body components and integrated die-casting technology.
The Gigacast process forms multiple aluminium body structures in a single casting, reducing the number of components and assembly processes required during vehicle production.
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According to the report, the technology could reduce the weight of some body structures by as much as 20%. It could also improve body rigidity and production speed while increasing driving range by several percentage points.
Toyota has not disclosed the final specifications of the electric SUV.
China Influences Toyota’s EV Strategy
Toyota had been developing a lower-slung next-generation electric coupe in Japan but reportedly halted the project in spring 2026.
The company subsequently shifted its focus toward SUVs, reflecting stronger demand for the segment in China.
The reported production plan would also represent a notable change for Toyota because the Lexus electric SUV would be among its latest-generation EVs to enter production outside Japan first.
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China has become an increasingly important market for Toyota’s electrification strategy as local automakers expand their electric vehicle offerings.
Lexus Shanghai Plant Targets EV Production
Toyota announced in February 2025 that it would establish a wholly owned company in Shanghai to develop and manufacture Lexus battery-electric vehicles and batteries.
The facility would make Lexus the second foreign automotive brand after Tesla to operate a wholly owned vehicle production plant in China.
The planned Shanghai production adds to Toyota’s efforts to strengthen its electric vehicle presence in a market where the company has faced increasing competition from Chinese automakers.
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Toyota remains the world’s largest automaker by sales, while China is its third-largest market after the United States and Japan.